LCCM LTD

Executive Summary

LCCM LTD shows a stable and healthy financial foundation typical of a young micro-entity, with positive working capital and growing net assets. The company’s financial “vital signs” indicate good short-term liquidity and effective management, though careful attention to liability growth and capacity planning is advised to support future growth. Overall, LCCM LTD is in a sound financial condition with prudent steps available to enhance resilience and operational capability.

LCCM LTD - Analysis Report

Company Number: 14684710

Analysis Date: 2025-07-29 15:30 UTC

Financial Health Assessment of LCCM LTD

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1. Financial Health Score: B

Explanation:
LCCM LTD demonstrates a generally sound financial footing for a company in its early years, with positive net current assets and net assets growing moderately from £3,278 to £3,855 over two reported financial years. As a micro-entity, it maintains compliance with filing deadlines and statutory obligations, reflecting well on management’s governance. The "B" grade indicates a stable and healthy financial state but with room to strengthen liquidity and diversify asset base, given the small scale and narrow financial scope typical of a micro company.

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2. Key Vital Signs:

Metric	2023 (£)	2025 (£)	Interpretation
Current Assets	5,608	8,265	Healthy increase, indicating improved short-term resources.
Current Liabilities	2,330	4,410	Increased liabilities, but still comfortably covered by assets.
Net Current Assets (Working Capital)	3,278	3,855	Positive working capital showing ability to meet short-term debts.
Net Assets (Equity)	3,278	3,855	Gradual growth signals retained earnings or capital injection.
Number of Employees	1	1	Stable workforce, typical for micro-entity, limiting overheads.

Interpretation:

• Healthy cash flow symptom: Positive and increasing net current assets suggest LCCM LTD has a "healthy cash flow" position to cover current liabilities, a vital sign of financial wellness.
• Symptom of stability: Consistent net assets and working capital growth indicate a stable financial "heartbeat," with no signs of distress or liquidity crunch.
• Limited asset base: The absence of fixed assets or long-term liabilities suggests the company operates with minimal capital investment, typical for a new micro-entity in construction services.

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3. Diagnosis:

The financial “symptoms” of LCCM LTD reveal a stable and growing micro-business, effectively managing its short-term obligations while expanding its asset base modestly. The company’s balance sheet shows no signs of financial “distress” such as negative working capital or excessive liabilities. The single employee and micro-entity status mean overheads are low, but growth potential may be constrained by limited resources.

Management changes (director resignation and new appointment) have been timely and transparent, with full control concentrated in Mrs Maria Jacota, suggesting clear decision-making authority and consistency in leadership.

The company operates in a specialized construction niche, which may carry some project-based risk but also opportunities for steady contract work. The absence of an audit requirement under micro-entity rules reduces compliance costs but also limits external financial scrutiny.

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4. Recommendations:

• Strengthen liquidity buffers: Although current assets cover liabilities, building a larger cash reserve or short-term liquid assets will prepare the company for any unexpected expenses or seasonal cash flow fluctuations.
• Expand asset base prudently: Consider investing in essential fixed assets or tools to improve operational efficiency and support business growth without overextending financially.
• Monitor liabilities growth: The increase in current liabilities should be tracked carefully to avoid a future “symptom” of financial strain. Negotiate longer payment terms with suppliers or improve debtor collection cycles to balance.
• Prepare for growth phase: With a single employee, the company may face capacity constraints. Planning for recruitment or subcontracting can prevent operational bottlenecks as business scales.
• Maintain compliance rigor: Continue timely submission of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
• Consider external financial advice: Periodic financial health “check-ups” from an external advisor can help diagnose risks early and suggest proactive measures to sustain robust financial health.

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